Freeze

An interruption in trading on a stock, triggered when an order violates parameters set by TSX.

If, As & When Issued Trading

Occurs when new securities are posted for trading, and trading takes place before the closing (formal original issuance) of the prospectus. Also known as the “grey market”. The term is used only for listing of new securities, either on a listing of a new issuer, a supplemental listing, or an additional listing of existing listed securities. Settlement occurs on the closing of the prospectus. The time from posting for trading to closing is generally within a week.

Interest Coverage

A measure of a company’s ability to pay interest on its debts (operating income divided by interest expenses).

Index Option

An option whose underlying security is an index. An example would be the S&P 100 (OEX). A trader can buy index options and bet on the direction of the OEX.